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This paper describes some of the challenges and opportunities of contract mining overseas, based on the experiences of Byrnecut Mining Pty Ltd over recent years. It seeks to highlight the advantages Australian miners have compared to competitors around the world, and the opportunities that arise from that. A number of pitfalls and how to avoid them are also discussed.

Jan 1, 2002

By J. B. Greenwood

The paper point out some reasons why contract mining should not achieve the same success in Latin America as it has in Australia. In this sense, any reasons are: the size of operation, mining industry employees bonus scheme, the privatization of nationalized mining assets, general sales tax and the mining unions. Therefore, great deal depends on the attitude or "mindset" of a company's employees. lt is strongly my view that the attitude with which a contractor approaches a job will give rise to a superior mindset amongst its employees when comparad to those from most mining companies. The value of this cultural difference is significant and should never be underestimated. lmportantly, it doesnot only manifest itself in a more productive workplace: it is invariably the case in Australia that the safety achievements of contract miners are superior to those generally expected from the mining industry at large.

Oct 6, 1999

New Zealand contract mining has been well established for close to 50 years. The opencast industry has grown from mining quantities of less than 1 million bcm per year in the 1950s to around 20 million bcm in the late 1990s. Trends here are following those in other countries with mining companies looking to contract out more of the so called traditional mining work. The key driver behind this trend is not unique to the mining industry, but is simply a matter of concentrating on doing a few things well. In the case of the mining company this has come to mean owning and developing orebodies and where appropriate, marketing mining products, and leaving owning and operating of mining fleets to the contractor. This has the effect of reducing risk to the mining company as well as lowering costs. Both can be achieved without losing control of the key elements of the operation. Optimising performance is simply a matter of identifying the key drivers behind performance, having the right plant and the right people at the right place and providing these people with the information they need to manage the operation.

Jan 1, 1997

BHP World Minerals (BHP) commenced development of the Cannington exploration decline in 1993 using Peabody Resources LimitedÆs Mining Services Division (PRL) as the contractor. Approval was given in 1996 to complete the mine development and bring the mine into production in 1997. The total mine development at Cannington by PRL has included 14 km of headings, 1040 m of shaft sinking for ventilation and ore hoisting and 990 m of raise boring for ore passes and vent rises. Hard money schedule of rates contracts were used for mine development from 1993 until early-1997. This took the mine development down to 570 m below the surface and developed six levels. Because of significant risks, the final phase of the mine development was completed in 1997 under a partnering agreement. This paper examines the factors considered in making the change to partnering, the issues involved in negotiating the partnering agreement to complete the Cannington mine development and the outcomes of the agreement.

Jan 1, 1998

By V. D. Leary, O&apos

Contracts between The Anaconda Co. and its miners at Butte, Mont., are not contracts in the true sense of the word. They are weekly verbal agreements which tacitly admit that the company, on the one hand, will supply the place, the tools, the material, and the opportunity and that the miners, on the other hand, will supply such effective labor that both parties will profit from the arrangement. Prices are seldom discussed at the time of hiring. The miner, in effect, is hired for a definite working place, as a contract miner, and if satisfied, tries to earn as much as he can. If he is not satisfied three courses are open to him: he can quit, he can ask for a change, or he can discuss prices or improved working conditions with the mine superintendent. This rather informal arrangement is due to conditions that are particular to Butte

Jan 2, 1961

By Dieter Birk

"The Atlantic Coal Institute illustrates the potential for high technology employment in Maritime Canada, by using local talent and the latest equipment to address a national market. Since I983, contract research for industry and government has generated 31 man-years of high-tech employment, added $2.3 million to the local economy and contributed new technology for Canadian coal. Industry now has access to new procedures for coal minerals analysis, pyrolysis, and geochemistry applied to industrial problems of exploration, beneficiation, conversion and combustion.Research at the Institute is market-driven, based on cost recoveries from contracts. The financial performance to date exceeds that of similar industrial research institutes in major cities and demonstrates that small isolated laboratories are cost-effective. Economic renewal of Canada's resource industries will require increased R&D which in turn can be a source of local employment and pride. Small research teams are more efficient but require an enlightened policy of contracting-out by big business and big government."

Jan 1, 1987

With the advent of the resources boom in the late 1960s most of the larger scale resources projects in Australasia were commissioned on an æowner miningÆ basis, where the mine owners owned and operated the primary mining equipment. Then, in the 1980s with the arrival of the gold mining boom in Western Australia and elsewhere, a change occurred û most of the mining activities were carried out on a contract mining basis. Over recent years, however, there has been a marked trend amongst larger Australasian open pit mining operations back towards owner-controlled and operated mining operations. The reasons for this are many and are addressed in the paper, but centre on the concept of the owner being prepared to assume more of the mining risk in exchange for the advantage of not having to pay a contractorÆs profit margin. Where mining contracts are entered into, the older æschedule of ratesÆ format is being replaced with less adversarial and more entrepreneurial contract alternatives involving operating cost and risk sharing in a spirit of æfair dealingÆ. Leasing and maintenance issues have also been influenced in recent years by the advent of more flexible contract arrangements with equipment suppliers. Group purchasing has also had some influence for project operators. For many mine owners, the optimal risk management profile involves a practical offsetting of the assumption of mining risk on the one hand, against the removal of litigation risk and potentially reduced operating costs on the other. Potential pitfalls may arise where equipment size and type requirements vary with time or where manpower management, mining flexibility, job skills or safety exposure factors are relevant. These issues are commented on in the context of some well known examples, and an update is provided on contract mining versus owner operation in large scale Australasian open pit mining generally.

Jan 1, 2002

With the advent of the resources boom in the late-1960s most of the larger scale resources projects in Australasia were commissioned on an æowner miningÆ basis, where the mine owners owned and operated the primary mining equipment. Then, in the 1980s with the arrival of the gold mining boom in Western Australia and elsewhere, a change occurred û most of the mining activities were carried out on a contract mining basis. Over recent years, however, there has been a marked trend amongst larger Australasian open pit mining operations back towards owner-controlled and operated mining operations. The reasons for this are many and are addressed in the paper, but centre on the concept of the owner being prepared to assume more of the mining risk in exchange for the advantage of not having to pay a contractorÆs profit margin. Where mining contracts are entered into, the older æschedule of ratesÆ format is being replaced with less adversarial and more entrepreneurial contract alternatives involving operating cost and risk sharing in a spirit of æfair dealingÆ. Leasing and maintenance issues have also been influenced in recent years by the advent of more flexible contract arrangements with equipment suppliers. Group purchasing has also had some influence for project operators. For many mine owners, the optimal risk management profile involves a practical offsetting of the assumption of mining risk on the one hand, against the removal of litigation risk and potentially reduced operating costs on the other. Potential pitfalls may arise where equipment size and type requirements vary with time or where manpower management, mining flexibility, job skills or safety exposure factors are relevant. These issues are commented on in the context of some well known examples, and an update is provided on contract mining versus owner operation in large-scale Australasian open pit mining generally.

Jan 1, 2002

By Jürg Künzle

The use of the underground space has been a recurring issue in human history, whereas the reasons for building subsurface structures have changed over time. In the decades to come, the world will be marked by a variety of underground projects never before seen. This paper describes a series of characteristic challenges of designing and building underground freight transportation systems, with reference to the example of Cargo sous terrain, a privately funded underground logistics project in Switzerland. It provides an overview of contracting practices that allow these challenges to be addressed with success.

Jun 13, 2021

By B. Kenny

The aim of this paper is to provide an overview of existing forms of subcontracting in the South African mining industry. A descriptive framework is developed to understand different subcontracting arrangements. We argue that, in order to do so, it is important to distinguish between labour broking and gang subcontracting. Data resulting from a research project (including an analysis of historical sources, interviews with contractors and focus group interviews with mineworkers) is presented to highlight the implications of changing formations of subcontracting for the South African mining industry in the late 1990s. Apart from the subcontracting of ?traditional? functions, such as shaft sinking, access development, catering and hostel maintenance, contractors are now used in ?core? mining activities. In some instances, whole shafts are ?outsourced? to outside agencies. It is argued that certain of the subcontracting arrangements have serious implications for the ability of the mining industry to improve health and safety standards. Some of the practices can potentially result in conflict between different categories of workers, and, as a result, instability in the industry.

Jan 1, 1999

By W. Fletcher, R. C. Schenk

This paper outlines a well proven and highly successful approach for eliminating many of the problem and frustrations often experienced in plant startup. The approach was developed over a period of 25 years during which some 90 plants were commissioned. This paper discusses startup from the contractor’s perspective and highlights the requirement for detailed startup planning, careful coordination during the project final construction phase, and thorough checkout of equipment prior to introduction of feed. Performance of these services has demonstrated a valuable opportunity exists for the contractor to assist in the training of the plant operating personnel.

Jan 1, 1983

"There is no fast way to add more than 6.4 km (4 miles) of track, most of it underground, to the Sound Transit Link Light Rail system in the Seattle, WA area. But increasingly busy traffic through a number of neighborhoods made it necessary. That’s the challenge a joint venture of several tunneling contractors faced when starting its portion of the $1.9-billion Northgate Link Extension in 2013, and the project is still keeping it busy three years later. Completion will mean just a 14-minute ride from Northgate to downtown for an extra 60,000 passengers by 2030. The transit lines will join 57 km (36 miles) of new and under-construction light rail lines running north, east and south from Seattle.Voters tired of long commute times approved the project, a key part of Seattle’s regional mass transit system, in 2008. The extension is part of a plan adopted by the Sound Transit board in 1996 to connect the region’s major activity centers. The Northgate project is meant to relieve one of the area’s most congested traffic areas by connecting the Northgate, Roosevelt and University District neighborhoods to existing routes including downtown Seattle and SeaTac airport.Sound Transit dedicated more than a quarter of the project’s estimated expense — $440 million -— to general contractor JCM Northlink LLC to handle the tunnel segment. JCM is a joint venture formed in 2013 between Jay Dee Contractors of Livonia, MI, Frank Coluccio Construction of Seattle, WA and Michels Corp. of Brownsville, WI. The contractors regularly collaborate on large-scale projects and brought experience working on a different section of the extension they completed in 2013.JCM project leaders knew immediately that the schedule would be demanding. They had to work around the clock six days a week to meet deadlines. The extension runs through highly populated areas, meaning contractors had to follow strict city noise restrictions between 10 p.m. and 7 a.m. Plus, supervisors needed to manage the scheduling of nearly 250 employees to keep work running smoothly.“We had eight different operations and four different subcontractors trying to work in one tunnel,” said Chris Wood, JCM site project superintendent. “It’s important that we keep work linear. That’s the biggest challenge: keeping a path in and out so you can pour concrete, keep electricians and carpenters going, and accomplish everything else.”"

Dec 1, 2016

By Charles E. Carlsen

Underground construction involves all the legal problems common to the construction industry and adds a nice little group of its own. Elements which will ultimately affect contractor-owner relationship commence to form almost as soon as the owner conceives of the project. A few of these with emphasis on their application to underground construction will be mentioned. (1) During the design stage, determination must be made as to whether the specifications will be general or restrictive. To what extent will the operations of the contractor be controlled? Can he proceed to use any method of tunnel excavation that he desires and only be responsible for the end result or will specific excavation procedures be required? Can explosives be used? Under what restrictions? Are tunnel supports required? How long can the crown behind the heading remain unsupported? What kind of supports are required? What restrictions on the placement of tunnel-lining concrete will be required? Each of you could extend this list for many pages but these illustrations are indicative of decisions that must be made in advance of bidding, and the ultimate decision on each question can have a significant effect on the legal relationships that exist between the contractor and the owner. The owner wants a good job at a fair price. On the other hand, nothing is worse than having a tunnel collapse during the construction period, with its extra costs, loss of life, and delay to the entire project. If the specifications are too restrictive, increased costs of performance are bound to occur. Owners save tremendous amounts of money by obtaining a contractor who has been ingenious in devising the most economical construction procedure. Care must be taken in drafting the specifications so that the benefits of such ingenuity will not be lost. (2) HOW is the contract to be awarded? Will there be open bidding, a restricted list of bidders, or will there be negotiations with a comparatively few contractors? If it is a government project, whether Federal, state, or

Jan 1, 1970

By Erich J. Jacob, Volker O. Meldner

INTRODUCTION Our company has made persistent efforts to utilize the very latest cost-saving technology in tunnel design and construction. However, we were relatively late in joining the clan of slurry shield tunnelers. The challenge came in 1973, when our company was low bidder on a major sewer tunnel in Hamburg, West Germany. The tunnel was to be driven under the harbor region through coarse and fine sands with up to 60 ft hydrostatic head of water. Outer diameter was 15 ft, and length was 2.9 miles. This contract appeared right to enter the new field of slurry face tunneling. We gathered a design-engineering team to develop the machine, called it "Hydroshield", and used it on the project. The good performance of the prototype machine encouraged us to improve and modify the equipment design. The very latest model is now in use on a subway tunnel in Antwerp, Belgium. This tunnel is 21 ft outer diameter and 2.4 miles in total length. In terms of excavated volume it is the world's largest slurry shield contract. While the drive is still in full swing, we are currently preparing for 3 further Hydroshield applications, with diameters ranging from 12 to 32 ft. This paper describes the Hydroshield's salient design features, operational characteristics, construction reliability and performance levels, as experienced in West Germany and Belgium.

Jan 1, 1979

By Bernard A. Grand, Gary A. Almeraris

This project involves the reconstruction of a 1,100 ft. long by 75 ft. wide segment of an existing 4 to 5 track subway under Northern Boulevard in the Borough of Queens in New York City. The project includes widening the existing subway to permit the construction of new inbound and outbound subway (T1 and T2) ramps adjacent to and under existing operating tracks. The plan of the project is shown in Fig. 1. Existing tall buildings along the job site and a contaminated groundwater plume under an adjacent rail yard required construction of slurry concrete walls along the east and west construction limits. Groundwater cutoff across the north and south construction limits of the subway was achieved by jet grout walls built across the subway invert slab between existing track and third rails. The work involved dewatering the construction site to a depth of about 50 ft. below street grade. This is a four year project and includes extensive work to maintain and protect subway and vehicular traffic of over half a million commuters a day through the work area. The project cost was $160,000,000.

Jan 1, 1999

Contracts are widely used in mining to provide self motivation in an environ-ment of isolated work places. Which incentives to use and how to implement them has long been the subject of numerous discussions. The mines operated by Australian Mining and Smelting at Broken Hill have evolved several guidelines to follow when developing contracts.Identify the main purpose of the work and use this as the basis of measurement for the contract. Therefore stoping achievement would be measured by tonnes extracted, development by metres driven. Paying for other work activities such as standing timber in timber stoping must detract from the percentage of the total contract paid per tonne produced. Concentrating on the main activity and applying the majority of contract pay to that task reinforces at is beneficial to both the miners and the whole operation.

Jan 1, 1985

By Louis W. Riggs

The primary concern in dealing with contractual arrangements for construction is getting the work completed satisfactorily, in the shortest time, and for the least expense for the owner--while assuring that all other parties associated with the contract make a reasonable profit for their effort. In our complex construction climate of today, achieving all of these is usually not possible. Somewhere between the beginning of design and the completion of the work, disagreements and delays arise which can destroy the best of intentions. Assuming that all parties associated with the contract are acting honorably and professionally, the disagreements generally arise through inappropriate contract types or through flawed contract documents. These flaws can be either sins of omission or commission, but we must find a way to lessen, if not completely eliminate, their impact. Disagreements and delays are directly related to the extra cost which the owner and the other involved parties must suffer. Usually the attorneys are the only ones who come out on the positive side. Inappropriate or defective contract documents can be the result of inadequate time for preparation and review, laziness in not searching out the proper terms and language, insufficient recognition of the proper assignment of risks, or just ignorance as to what is right and what is wrong for the particular project. They can also result from a client, particularly a public agency, providing rigid general conditions and format requirements with which the engineer is not allowed to tamper. Arguments

Jan 1, 1979

The recommendations of a recent American report on "Better contracting for Underground Construction" are considered in relation to Contracting practices on major Australian projects by representatives Of the "classical trilogy" - the Owner, Engineer and Contractor.

Jan 1, 1976

By William Babcock

Augered, Cast-In-Place (ACIP) piles can be an economical, reliable, versatile foundation system. They have also been a part of projects that were behind schedule and the subject of lawsuits. The ACIP pile is a specialty system that is more workmanship dependent than most deep foundation systems and is especially vulnerable to the problems and abuse of poor specifications and contract language. Many of the original specifications were based on grouting methods, and numerous misconceptions have followed the method. The Deep Foundations Institute (DFI) has been the leader in debunking the mystique that has hovered over the method and attempted to standardize the industry through publication of the manuals describing the method and how it should be inspected. DFI should be applauded for taking the lead and producing a reference document that can be used to educate the specification writers, designers, inspectors, and owners. It must be must appreciated that there have been other organizations that would not acknowledge ACIP piles as a legitimate member of the deep foundation family. Some consultants and designers have gone to the extreme of making it policy to not recommend the method for use. This presentation is one practitioner's view of the causes of problems as they can be traced back to the contractual conditions. It is intended to provide a broader and different perspective than those provided by the technical specialists. It does not necessarily reflect the position of the DFI or any of the organizations associated with the ACIP pile industry. It is intended to further the spirit of partnering on every ACIP pile project, to further the acceptance and promote the use of this unique system, for the benefit of all the parties. It should be recognized, however, that all of the participants can and do play a role in getting a project into trouble. My view is that projects that get into trouble usually have an early flaw that leads the project to the edge, and the project participants blindly follow the original mistake right over the cliff like lemmings. This instinctive reaction may be a survival tactic by going along with the group, because any one party that departs from the program or shows a position of weakness is a candidate for sacrifice.

Jan 1, 1997

By Lukas Erkurt, Wolfgang Holzer, Stefan Auderer, Richard Gradnik

SEM/ NATM Tunnelling contracts in Austria and Germany are usually tendered applying unit price contracts. The purpose of this paper is to show how contractual problems are resolved in these countries. The focus will be put on describing the theoretical approach, several case studies will show how contractual problems were dealt with on site.

Jun 23, 2024